New IOTA Paper from Belgium and the Netherlands: How to Improve Tax Compliance in a Cross-border Tax Debt Setting? Evidence from a cross-country behavioural experiment
We are pleased to announce the publication of one of our latest IOTA Papers. Maarten Luts and Michael Roekaerts author this edition from the Belgian, and Paul (P.R.) van der Smitte and Rob (C.T.) Heeskens from the Dutch Tax Administration.
In 2022, the Belgian Tax Administration (FPS Finance) and the Netherlands Tax Administration (NTA) launched a joint behaviourally inspired field trial—Called the BeNe-project—to improve payment compliance among cross-border taxpayers. Implemented in 2023, the project builds on long-standing bilateral cooperation and addresses the limitations of formal Mutual Assistance for Recovery under EU Directive 2010/24/EU. By using Behavioural Insights in reminder letters, the project aimed to re-establish communication with taxpayers living abroad, encouraging voluntary compliance, reducing administrative burdens, and recovering tax claims due that would otherwise fall outside formal enforcement mechanisms. This new and innovative approach was thoroughly tested in a Randomized Controlled Trial (RCT) and proved to be highly significant in terms of sparking reaction, payment (solutions), and - to a lower degree - avoiding debts evolving into Mutual Assistance for Recovery procedures amongst international taxpayers. The report concludes that preventive actions using behavioural insights on cross-border taxpayers can have added value and contributes to re-connecting and reengaging with this particular target group of taxpayers, living abroad. This new and impactful strategy could be easily replicated by other interested partnering jurisdictions that are looking to reduce their stock of international tax claims in a cost-effective way.
Learn more about the topic at this link.
If you have relevant insights to share and are interested in publishing your own IOTA Paper, please reach out to the IOTA PCP of your Tax Administration and find the submission link included in our monthly newsletter. We look forward to receiving your contributions.
In the meantime, if you wish to browse previous issues, please visit the dedicated webpage for the IOTA Papers on the IOTA Web Portal.
We wish you a good reading!
